Top 5 Best Insurance Companies for Young Drivers
Age and experience are some of the factors that insurance companies consider in setting the cost of their coverage.
Young Drivers generally are individuals of very young age, mostly between 20 and 25 years, who still have little or no driving experience.
No doubt insuring such drivers poses a higher risk than insuring adult drivers who already have driving experience. Because there is a higher chance of recording damages among such young individuals than the adult drivers.
According to the Insurance Institute for Highway Safety, there are always higher records of vehicle crashes and deaths among drivers between the ages of 20 and 24 years.
Because of this, most insurance companies charge more to insure such young drivers than they charge to insure adult drivers with experience.
However, there are still some insurance companies that have some considerations for young drivers, where young drivers would be able to spend less on their car insurance and still get what they want.
What is the Normal Insurance Cost for Young Drivers?
As said earlier, car insurance for Young Drivers is costlier than that for adult drivers with driving experience. According to Bankrate, the normal insurance cost for young drivers ranges from $4,972 per year for full coverage for 20-year-old drivers to $3,031 for 25-year-olds. This may be a bit costly for such young individuals. However, there are still some companies that offer cheaper cover for young drivers, which we shall be revealing in this article.
What Does Insurance for Young Drivers Cover?
When hearing the sentence “Insurance for Young Drivers”, one may be tempted to think that the insurance policy is to cover the car of the young drivers. But is it only the car that is covered? NO! Some other things are also covered in this circumstance. However, what is covered here depends on the kind of coverage you choose.
Some of the things insurance for Young drivers can cover are:
- Expenses Of Other Drivers
Insurance for Young drivers can cover the expenses of another driver in case of an accident. To get this coverage, you may need to subscribe to the coverage known as Auto Liability Insurance.
- Repairs and medical bills
This insurance also covers the vehicle repairs and medical bills of young drivers in case of an accident. To get this coverage, you may need to subscribe to the coverage known as Uninsured Motorist coverage or Personal injury protection and medical bill payment coverage.
Best Insurance Companies For Young Drivers
The major thing that matters in choosing the best insurance companies for young drivers is the insurance cost. So, in this section, we are going to be looking at those insurance companies that offer cheaper insurance coverage for young drivers.
- Nationwide
If you are looking for the best, affordable insurance companies for young drivers, then Nationwide may be a great option for you. We are rating it here because it’s one of the insurance companies that have the cheapest rate for Young Drivers, among all that we checked.
According to USNews, the insurance rate on Nationwide for Young Drivers ranges from $1,892 annually for single 25-year-old females and $2,031 annually for single 25-year-old males. This is over 20% cheaper than the normal cost of some other Insurance Companies.
- GEICO
Another company on our list here is GEICO. GEICO means Government Employees Insurance Company. It is an American insurance company which offers several insurance coverages like Home insurance, general liability insurance, auto insurance – including for young drivers, etc.
GEICO is known to offer various kinds of discounts, especially for young drivers. This helps to reduce the cost of insurance for young drivers.
According to USNews, the GEICO insurance rate for a male young driver is from $1,952 per year to $1,921 per year for a female young driver.
- Auto-Owners
Auto-Owners is a popular insurance company known to provide several insurance policies like Home insurance, life insurance, business insurance and car insurance – including For Young Drivers.
Just like some other Insurance Companies that provide affordable coverage for young drivers, Auto Owners also do. It provides very affordable insurance covers for young drivers through their discounts. Some of their discounts are: Good students discount, green discount, paid in full discount, etc. All these help to make their coverage for young drivers very cheap and more affordable than some other companies.
According to our findings, the Auto owner insurance rate for a young female driver is $1,946 per year, while that of a young male driver is about $2,035 per year.
- State Farm
State Farm is one of the insurance companies that offer the best insurance coverage for young drivers.
The company is known to offer several insurance policies like Home insurance, car insurance, and so on. It also offers various kind of discounts which helps to reduce the cost of insurance for Young Drivers.
According to the Bank rate, the State Farm insurance rate ranges from $2,843.
- Travellers
If you are searching for the best insurance for Young drivers, then Travelers may be a good option for you. It offers various kinds of insurance cover; including home insurance, business insurance and auto insurance.
Travelers has been in the insurance space since 1864 and it offers a variety of auto coverage, including gap insurance, new car replacement coverage and liability-only policies for non-owners.
Just like other Insurance Companies, Travelers also offer different kinds of discounts which helps to keep Insurance covers for young drivers at a very affordable rate. Some of their discounts are:
- Multi-policy discounts: you get this discount if you insure two or more cars on one Travelers policy.*
- Homeownership: Here, you get discounts on your car insurance if you own a home or condo, even if you insure it elsewhere.
- Safe Driver Discount: You get this discount if you have not recorded any accidents or violations for the past three to five.
- New car discount: you get this discount when you purchase a new car or own a car that is less than three years old.
How to Further Lower Your Insurance Rate as a young driver
As a young driver, there is a higher chance of damage than an older driver with more driving experience. This will make you spend so highly on insurance covers if you are not strategic Enough.
If, after choosing the insurance company that offers cheaper insurance covers for young drivers, you still want I Cheaper, there are still further approaches you can take to lower your insurance cost. Some of these approaches are discussed below:
- Stay on your parents’ Policy
If your parents already have an existing auto insurance plan, you can still pair up with their plan and not pay any additional cost. This will help you save almost all the money you should have been paying separately if you were to get yourself a separate plan. Insurance companies can allow you to join your parent’s existing auto insurance plan, as long as you are still under 25 years old and still living with them – sharing the same address with them. However, if the car was registered under your name, it may no longer be possible to share it on your parent’s auto insurance plan.
- Choose only Necessary Coverage
There are several types of auto insurance, ranging from liability auto insurance comprehensive auto insurance, collision, personal injury protection, umbrella insurance, towing and labour.
All these have different things they cover. And the more you combine them, the higher the cost of your overall car insurance.
So to reduce your car insurance cost, you need to check through the types of auto insurance that the company offers, then go for only those that you need. Don’t include insurance coverage that may not be too relevant to you to avoid paying for what you don’t need.
- You Can Try Usage-based insurance
The usage-based insurance (UBI) involves your insurance company using a technology known as Telematics to monitor and track your driving habits. If your driving habits are safe and good, the company will reward you for your safe driving. This helps to save more on your auto insurance. However, on the other hand, your driving habit is bad and risky; the insurance company may not reward you or may even raise your insurance cost because your driving habit is posing a risk to them.
- Increasing your Deductibles
Another way you can reduce your auto insurance cost as a young driver is by increasing your deductibles. Deductibles are the amount you are to pay to your insurance company before they start insuring you. It is established that the higher you raise your deductible, the cheaper your insurance cost.
Conclusion
Insurance companies see higher risks in insuring young drivers who have not got enough experience in driving. Because of this, most of the companies mostly charge higher amounts to insure such young drivers. However, there are still some insurance companies that provide a more subsidized insurance cover for young drivers. Most of them do this through discounts and other means. Some of such companies are GEICO, Nationwide, Auto Owners, etc.
